Slumdog Millionaire Harry Potter and the surging popularity of 3D films helped offset dwindling advertising revenues for cinema chain Cineworld last year and it is relishing more blockbusters in 2010.

The company today highlighted the upcoming release of Shrek 4, Toy Story 3 and Sex and the City 2 as reasons to be confident going into the new year.

It said it was well placed to capitalise on more 3D films, which allow cinemas to charge a premium on tickets to standard 2D offerings.

"The UK and Ireland cinema industry enjoyed another good year in 2009," Cineworld said in a trading update. "This box office growth was underpinned by a strong release schedule, which included Slumdog Millionaire, The Twilight Saga: New Moon, Transformers: Revenge of the Fallen and Harry Potter and the Half Blood Prince and a number of 3D releases, the most notable being Bolt, Monsters v Aliens, Ice Age 3, Up and Avatar.

"The number and success of films released in 3D has raised the profile of this format, which in turn has had a favourable effect on cinema admissions."

Cineworld's finance director, Richard Jones, said much of the premium charged for 3D tickets had to be passed back to film distributors or used to fund new equipment, but still the investment had paid off. "We are bringing something new to the customer and the cinema, which is driving admissions because it's something that you can't see at home. It's getting people out of their homes and experiencing something larger than life," he said.

The chain of 77 cinemas said that total revenues rose 11.4% in the 53 weeks to 31 December. That was thanks to a 16.8% rise in box office takings and a 9.6% rise in revenues from popcorn, drinks and so on. The ticket sales outperformed the industry-wide box office in 2009, which was up 11% on the year, according to data from Nielsen EDI, quoted by Cineworld.

Jones said Cineworld's outperformance was largely driven by special offers such as "bargain Tuesday" which he said helped make the chain's average ticket price, £4.70 excluding VAT, the lowest among the big cinemas. Food sales were also helped by special offers but generally Cineworld had not seen consumers cutting back on popcorn, he added.

"People still seem come to the movies and want an escape from their daily lives and they want their treats," he said.

Between them, ticket sales and retail "more than compensated" for a 27.3% slump in other income, mainly screen advertising revenue, which suffered as companies slashed their marketing budgets. Jones said that in the longer term Cineworld was expecting advertising to pick up, as companies use cinema to make up for consumers who increasingly fast-forward through TV adverts. But he did not expect any great improvement in 2010.

Despite the recession, UK cinemas enjoyed a record year in 2009. Industry experts cited mass escapism on the part of consumers, a strong awards season for the UK led by Slumdog Millionaire and a surge in 3D blockbusters capped off with the release of Avatar, James Cameron's 3D spectacular.

Cinema chains also report that hard-up consumers have opted for nights at the cinema over costlier meals at restaurants.